In a significant blow to the Tamil Nadu government, the state government’s revenue deficit is expected to overshoot the budgetary estimates for the year 2018-19 in massive figures as the figures till the end of November show that deficit has touched 98 per cent of the forecast with four more months to go, reports TOI.
The revenue deficit was estimated at Rs 19,200 crore for the year, but touched Rs 18,759 crore till the end of November.
The delay in the release of IGST revenue from the Centre to the state is a matter of concern for finance managers, despite the goods and services (GST) revenue hitting 86 per cent of the annual estimates in the first eight months. They said that the repeated lowering of GST rates for many commodities is not sweet news either.
The mounting expenditure is a significant concern for the state. The expenditure on pension has touched 74.4 per cent of the budgetary projection, compared to 65.66 per cent during the same period last year. The state has been forced to loosen its purse strings by back-to-back calamities. Chief Minister Edappadi K Palaniswami announced 292 crore allocation for construction of check dams across the Cauvery and construction of houses for the victims who lost their homes due to the floods.
Meanwhile, Cyclone Gaja left infrastructure in the delta districts in shambles with the total damage running into several thousand crores of rupees with the state government releasing Rs 1,000 crore as an interim measure. The Union government approved assistance from National Disaster Response Fund of Rs 1,146.12 crore for Cyclone Gaja relief, after much delay.
The Centre, citing non-conduct of elections, has been strict about not been releasing funds for the local bodies. The share of indirect taxes and direct taxes, which are outside the purview of GST, for this year has been lower compared to the previous years.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.